Reduce Supply Risk Now
The recent economic crisis has put supply risk on the top of every company's agenda. In fact, as the Aberdeen Group reported in its Aberdeen CPO Agenda:
71% of CPOs surveyed believe supply risk is increasing, yet less than 30% have formal programs to manage risk. Two-thirds of the same companies expect supply risk to increase over next three years.
Massive commodity price swings followed by recession and widespread bankruptcies dramatically increased business focus on managing risk. Supply risk has always been around. But the global economy's recent challenges have elevated its priority from "we'll get to it some day" to "we need an answer now." Consider:
- US business bankruptcies were up 74% in 2008 and another 35%+ in 2009
- Corporate bond default rates up to nearly 15%
- Government oversight of supply chains at historic lows (e.g. Less than 2% of US food imports are inspected.)
- Oil prices ranging from <$40/bb to > $140bb over 12-month period
This is not just a supply chain issue. It's a sales issue, a brand issue, and core to everything at your organization.
What can you do to find, fix and follow-up on the risks in your supply chain? Ariba has developed a comprehensive set of solutions – combining our technology, service capabilities, and community resources in the Ariba Commerce Cloud – to address all types of supply risk, from brand and reputation to supply disruption and commodity shocks.
The result: Companies can identify potential financial, operational, and market risks in their supply chain and rapidly develop and execute contingency plans to mitigate these risks.
Hear how these leading companies have addressed risk in their supply chains:
Stanley Works:
Risks and Opportunities
Tyco: What are the risks...and
how is procurement helping?
JetBlue: Procurement risks,
role & opportunities
Check out the related resources in the sidebar to get answers to your tough questions about supply risk.
Request more information about Ariba services for mitigating your supply risk.
